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Chevron and Hess Midstream asset restructuring

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-25 19:54 UTC → 2026-10-26 04:41 UTC · added removed

Chevron Corporation has entered into definitive agreements with Hess Midstream LP to restructure Bakken midstream contracts and transfer ownership of its DJ Basin crude oil midstream assets to Hess Midstream. In exchange for these assets and its ownership interests, Chevron will receive $200 million in cash. Chevron expects the move to reduce its Bakken unit midstream costs by roughly 50% and fully deconsolidate Hess Midstream, which carries approximately $3.7 billion in debt. While the company anticipates the deal will be accretive to return on capital employed, it expects a one-time after-tax loss between $3 billion and $4 billion because it cannot recognize future cost savings as an asset. Following the announcement, Hess Midstream shares initially fell approximately 15%. By late October, the company’s stock had experienced a total decline of approximately 20% over the month. This downturn was driven by market reactions to the agreement for Hess Midstream to accept lower fees from Chevron in the Bakken Shale region between 2027 and 2033, which led to a reduction in 2026 EBITDA guidance and a cautious outlook for 2027. The acquisition includes assets with an oil gathering capacity of about 400,000 barrels per day, gas gathering capacity of 300 million cubic feet per day, and 420,000 barrels of storage capacity. On October 26, 2026, Raymond James upgraded Hess Midstream aims with a $32 price target, suggesting that recent market losses were “excessive.” The upgrade noted that while lower Bakken fees reduce adjusted EBITDA forecasts, the deal extends the commitment to become an independent, multi-basin midstream company upon utilize Hess Midstream’s infrastructure through 2045, providing long-term volume stability. Following the deal’s expected closure upgrade, Hess Midstream shares rose by the end of 2026. 1.9%.

Versions

  1. 2026-10-26 04:41 UTC Chevron and Hess Midstream asset restructuring
  2. 2026-10-25 19:54 UTC Chevron and Hess Midstream asset restructuring
  3. 2026-10-07 17:16 UTC Chevron and Hess Midstream asset restructuring

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